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NEW DELHI: Car sales in October soared on the back of the Big Three - Maruti Suzuki, M&M and Hyundai - posting strong numbers on new launches, Dussehra and well-stocked dealerships ahead of Diwali.

Maruti, which suffered a nightmarish October 2011 following a shutdown at its Manesar plant due to labour strife, saw normal production this year. Not surprisingly, it posted an 87% increase in domestic sales at 96,002 units compared with 51,458 cars in the year-ago period. Exports jumped 72% to 7,106 units.

"We expect better sales in coming months as demand picks up in the second half due to festive sentiments and year-end buys," Maruti MEO (marketing & sales) Mayank Pareek said.

Sales of Maruti Suzuki's DZire model increased nearly three-fold to 14,389 units in October from 5,001 units in the same month last year, it said. Bucking popular trend, sales of petrol-powered mini cars such as M800, A-Star, Alto and WagonR increased 69% to 42,233 units during the month from 25,009 units in October last year. The compact segment, comprising Estilo, Swift and Ritz, saw sales more than double to 22,459 units from 10,859 units in the same month a year ago.

Hyundai roared back from last month's negative territory and posted an 8% rise in sales in October. The South Korean company sold 35,778 units powered by a strong demand for its Eon compact car and Elantra sedan. Exports too rose a robust 50% to 23,007 units (15,321 units last year) with aggregate sales increasing to 58,785 units from 48,322 in 2011.

An analyst tracking the industry said demand is likely to continue beyond the festive period and would propel sales beyond October. "The market lacks any crackers, but major players such as Maruti Suzuki have seen demand improve due to demand for diesel cars and general buoyancy in the market. Most companies have launched new cars, and may see sales grow as customers purchase new cars during Diwali," says Sageraj Bariya, managing partner at Mumbai-based independent advisory and research services firm Equitorials. The coming months will, however, be challenging. "The challenge will be to convert customer interest into sales as the general inflationary trend, high fuel prices and interest rates are still keeping the sentiment muted," said Srivastava. In October, Hyundai sold 50,146 units in the A2 segment (Eon, Santro, i10 and i20), while sales in the A3 segment (Accent and Verna) stood at 7,895 units.

Utility vehicles maker Mahindra & Mahindra announced all-time high monthly figures in October with a 44% jump in sales of cars and UVs at 26,932 units. Its passenger vehicles, which include UVs such as Bolero and the Verito sedan, saw a strong demand in rural markets. M&M CEO (auto division) Pravin Shah said, "The festive demand was boosted by the 25-basis-point reduction in CRR (Cash Reserve Ratio) effected by RBI in the credit policy announced earlier. This, however, is not likely to result in a decrease in interest rates for corporate or retail credits and hence financing rates will remain high for auto industry customers, which is a cause for concern."

In stark contrast, American carmakers General Motors and Ford India continued to report a slump in sales. General Motor's sales fell by a steep 33% to 6,754 units in October. GM India Vice-President P Balendran said, "The market continues to remain subdued due to high interest rates and other negative market sentiments. The festival season also did not bring any excitement. Having said this, we are upbeat about the new Chevrolet Sail to be launched tomorrow and other new launches in the coming months."

Giving them company was Tata Motors, which reported a 16% dip in car sales to 21,119 units from 25,124 vehicles in October 2011. Though as the company launched new models to lure customers during the festive season, like the newly refurbished Safari Storme SUV, its performance in October remained subdued.

Sales of the Indica hatchback range declined 38% to 6,692 units, while the Indigo sedan range also posted 8% lower sales at 5,748 vehicles. The only exceptions were micro car Nano (which posted a marginal 4% growth at 4,004 units) and the utility vehicles range comprising Sumo, Safari & Aria (which saw a 12% rise at 4,675 vehicles). Exports of passenger vehicles declined 13% to 3,626 units in October compared to 4,171 vehicles in October 2011.

Japanese carmakers remained a strong force in the festive period. Toyota Kirloskar Motor reported a 14% increase in sales at 12,281 units. The company had sold 10,762 units in the same month last year. The significant rise came from Innova, which sold 5,889 units - a growth of 73% over the 3,411 units sold in October last year. Sales of Fortuner SUV jumped 81% to 1,378 units while the Etios series posted a fall in sales at 4,596 units compared with 5,859 units in October 2011. The Corolla Altis sedan sold 332 units. "The market is still sluggish, especially the passenger cars segment. The SUV and MPV segments are comparatively better and we hope to see the market pick up, as the festive season continues," said Sandeep Singh, deputy managing director (marketing), Toyota.

Honda Cars India saw a 46% jump in domestic sales at 8,085 units during October compared with 5,526 units in the same period last year. The company has cumulatively sold 43,525 units during April-October 2012 against the 29,717 units in the corresponding period last year.

Two-wheeler companies also saw success during the festive period. Hero MotoCorp - the world's largest two-wheeler manufacturer - reported its highest despatch sales. It despatched 529,215 two-wheelers in October, 3% more than the 512,238 units sold in the last festive period.

"With Diwali around the corner, we are prepared for even better retail sales. We hope the improved market sentiment will sustain itself as we go forward into the rest of this fiscal," Hero MotoCorp Senior Vice-President (marketing & sales) Anil Dua said. Arch rival Honda Motorcycle and Scooter India too posted higher growth.